Does Belocal have a right of first refusal to acquire a franchisee's business?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| n. Franchisor's right of first refusal to acquire franchisee's business | Section 9.C. and 9.D. | We can match any purchase offer you want to accept for your Franchised Business. Before you obtain an offer from a buyer, you must first offer to us the right to purchase your Franchised Business. If you do so, then we only have a right of first refusal if the terms proposed to another buyer are different than the terms offered to us. |
| o. Franchisor's option to purchase franchisee's business | Section 9.C. and 9.D. | We can match any purchase offer you want to accept for your Franchised Business. Before you obtain an offer from a buyer, you must first offer to us the right to purchase your Franchised Business. If you do so, then we only have a right of first refusal if the terms proposed to another buyer are different than the terms offered to us. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 49–55)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Belocal possesses a right of first refusal to acquire a franchisee's business. Specifically, Belocal can match any purchase offer that a franchisee intends to accept for their franchised business.
Before a Belocal franchisee seeks an offer from a potential buyer, they must first offer Belocal the opportunity to purchase the business. However, Belocal's right of first refusal is conditional. It only applies if the terms proposed to another buyer differ from those initially offered to Belocal.
This provision allows Belocal to maintain control over the transfer of its franchises and ensures that it has the option to acquire successful locations or prevent them from falling into the hands of competitors. For a franchisee, this means that selling the business may involve a preliminary negotiation with Belocal before engaging with other potential buyers, and the final terms of sale may need to be equivalent to those offered to Belocal.